Assume that you have been hired by Cineworld which a Cinema chain operate in the United Kingdom as an accountant, when you started working you discovered the following errors that happened on the books of Cineworld.

You are to analyze the impact on the indicated items at the end of the current year by stating if these errors will overstate or understate or will have no effect on the following items.

Events	Items
	Assets	Equity	Cost of Goods Sold	Net Income
1. A physical count of goods at the end of the current year resulted in some goods being counted twice.
2. The ending inventory in the previous period was overstated.
3. Goods purchased on account in December of the current year and shipped FOB shipping point were recorded as purchases, but were not included in the count of goods on hand on December 31 because they had not arrived by December 31.
4. Goods purchased on account in December of the current year and shipped FOB destination were recorded as purchases, but were not included in the count of goods on hand on December 31 because they had not arrived by December 31.
5. The ending inventory in the previous period was understated $15,000 and that the ending inventory in the current period was overstated $25,000.